Beyond The Numbers: 20 Analysts Discuss Sprout Social Stock


In the preceding three months, 20 analysts have released ratings for Sprout Social SPT, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 8 5 0 0
Last 30D 0 0 1 0 0
1M Ago 4 4 4 0 0
2M Ago 0 1 0 0 0
3M Ago 3 3 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $61.45, a high estimate of $83.00, and a low estimate of $40.00. Highlighting a 14.26% decrease, the current average has fallen from the previous average price target of $71.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Sprout Social. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Chris Merwin Goldman Sachs Lowers Neutral $44.00 $80.00
David Hynes Canaccord Genuity Lowers Buy $50.00 $70.00
Elizabeth Porter Morgan Stanley Lowers Equal-Weight $49.00 $65.00
Brett Knoblauch Cantor Fitzgerald Lowers Overweight $46.00 $74.00
Raimo Lenschow Barclays Lowers Overweight $50.00 $72.00
Brian Schwartz Oppenheimer Lowers Outperform $43.00 $76.00
Scott Berg Needham Lowers Buy $55.00 $75.00
Rob Oliver Baird Lowers Neutral $45.00 $72.00
Clarke Jeffries Piper Sandler Lowers Neutral $40.00 $66.00
Scott Berg Needham Maintains Buy $75.00 -
Brian Schwartz Oppenheimer Announces Outperform $76.00 -
Elizabeth Porter Morgan Stanley Lowers Equal-Weight $65.00 $73.00
Scott Berg Needham Maintains Buy $75.00 -
Jason Ader Keybanc Announces Overweight $83.00 -
Raimo Lenschow Barclays Lowers Overweight $72.00 $75.00
Brett Knoblauch Cantor Fitzgerald Maintains Overweight $74.00 -
Clarke Jeffries Piper Sandler Raises Overweight $66.00 $62.00
David Hynes Canaccord Genuity Maintains Buy $70.00 -
Scott Berg Needham Maintains Buy $75.00 -
Surinder Thind Jefferies Announces Buy $76.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Sprout Social. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sprout Social compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Sprout Social's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sprout Social's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

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All You Need to Know About Sprout Social

Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.

A Deep Dive into Sprout Social's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Sprout Social showcased positive performance, achieving a revenue growth rate of 34.34% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Sprout Social's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -21.45%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sprout Social's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -13.89%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Sprout Social's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -5.04%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Sprout Social's debt-to-equity ratio is below the industry average at 0.51, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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